Its a super secret equation … much of it was revealed in the last CBA though…somehow how it is written in the cba still isn’t how it is exactly applied though
If you want a real in depth explanation click here
If you want the basics, all the salaries of free agents signed are slotted based on where they fall league wide In average per year.. ( note that not all of the contract always counts… certain bonuses can be cut out of the equation for somme stupid reason)
Then you take the total number of nfl players and subtract their ranking from that…
So if a player got a contract that paid them 20 million a year and that was the 150 largest in the league and there were 1800 players it would be 1800-150= 1650
Then THAT number is adjusted for how many snaps the guy played and adjusted again if tgey win any major awards
But wait it gets better… then they assign a draft pick value to every player… and tgey compare losses to gains and cancel out all the equal ones and any leftover gains cancel the next highest guy
So if a team had two third round losses as well as a fifth and a seventh but one third gain and two sevenths one third would cancel out one of the thirds, one seventh would cancel the seventh… the other seventh would cancel the fifth and the team would get a third
Im leaving out a lot of bullshit